A company that owns some of the largest social networks in the world, Meta can lay off thousands of employees starting this week. According to information released by the The Wall Street Journal this Monday (07), the wave of layoffs may occur from next Wednesday, November 9th.
The paper says people familiar with the matter are talking about “the biggest round of layoffs in the wave of tech job cuts” after the industry’s rapid expansion during the coronavirus pandemic. According to the company, there are more than 87,000 individuals currently working in its offices.
Mark Zuckerberg, CEO of Meta, said in his latest fiscal report that he intends to increase investment in “high-priority areas of expansion” in 2023, which would see certain divisions grow above average while other teams “stay no growth or decline.”
O The Wall Street Journal points out that, like other technology giants in the field, Meta grew significantly between 2020 and 2021, opening doors to more than 15,000 new employees during the period alone. Despite solid expansion, the company recorded a significant drop in revenue in July 2022.
While Facebook, Instagram, and WhatsApp have faced more competition over the past few years, the difficulty in getting the metaverse on board is one of the biggest factors that led to Meta’s revenue shrinkage. About $15 billion has been invested in the VR concept, but with no big returns.
Sought to discuss the matter, the Meta did not comment on the possible mass layoffs scheduled for this week. In a preliminary note released in its financial report for the last fiscal quarter, big tech said it “expects to reach the end of next year as a company of the same size, or even a little smaller, than it is today”.
